Mamo Mihretu Says Ethiopia’s Old Growth Model Created the Crisis FX Reform Had to Fix
Former Ethiopian central bank governor Mamo Mihretu criticized the country's previous public investment-led growth model for causing long-term macroeconomic instability. He argued that while the strategy initially drove rapid expansion, it ultimately led to severe debt, inflation, and foreign exchange shortages.
Why it matters
This assessment provides critical insight into the structural economic challenges facing developing nations that rely heavily on state-led infrastructure spending.
Former central bank governor says public investment-led growth delivered expansion but left behind FX shortages, inflation, debt stress and financial-sector risks
The article reports on a professional critique of economic policy, maintaining an objective tone by summarizing the former official's perspective.
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